Skip to main content

tv   The Willis Report  FOX Business  December 14, 2013 11:00pm-12:01am EST

11:00 pm
tomorrow night's is docile but we will be back on ♪riday. ♪ gerri:ello, everybody, i'm gerri willis. tonight on "the willis report," a user's guide to taxes. your tax questions answered from estate taxes to obamacare. we've got you covered. this is your time to chime in. we're including your e-mails, tweets and your phone cal. also the legal battle over a cross erected for war veterans. a judge orders it taken down, but will it be removed? we're watching out for you tonight on the willis report. ♪ ♪ gerri: welcome to "the willis report," your show, your moy, your voice. and tonight your irs.
11:01 pm
all week long we've been talking taxes, and our user's guide to taxes from what the new law changes are to strategies to help you plan for your returns with that big bill coming in april. and even tips on how to find the right tax preparer for you. tonight we're wrapping up our series with what nobody is telling you about the irs and the new role it will play in the coming year. and later in the show we're going to be answering your questions. if you have tax questions, you want to talk taxes, maybe you just want to sound off about the irs. call me, 1-877-249-9626. joining me now to talk taxes and irs, grover norquist, the president of americans for tax reform. grover, it is great to have you here. we're going totalk irs in just a second, but first i want to get you to, well, some comments from the speaker of the house, john boehner. he was pretty critical of your organization and some others. here's what he had to say recently. >> they pushed us into this
11:02 pm
fight to defund obamacare and to shutdown the government. most of you know, my members know that wasn't exactly the strategy that i had in mind. but if you'll recall the day before the government reopened, one of the people, one of these groups stood up and said, well, we never really thought it would work. are you kidding me? gerri: what do you say to that? [laughter] >> well, look, we're moving forward on protecting the sequester, and just for the record, he wasn't critizing my group. we didn't endorse the defund-only strategy. but what boehner's put together and the deal that was just put through the house prects the sequester for the next decade. what people, i think, were not aware of is that there was very real pressure on the sequester from some of the republican appropriators and some of the defense hawks who wanted to spend more money on defense. so the sequester i is now good r
11:03 pm
a decade, stronger than it was before, and most important, we replaced the spending cuts -- i'm sorry, spending increases of two years with permanent spending cuts -- gerri: okay, for our viewers, here's a rough synopsis of what in the budget proposal does. total federal spending at 3.5 trillion, caps government spending levels, reduces the deficit. here's some big picture numbers for you to take a look at on this budget, and i've got to tell you, grover, it's interesting, i've got to think there's so much complaining about this budget on both sides of the aisle that it mit be the right tonic right now. >> well, what it does do is allow us to focus on obamacare for the next several months and get ready for the 2014 elections. [laughter] so it has that advantage. gerri: all right. well, let's talk about obamacare for a second because, look, here's what i think. you pay a ton of attention to taxes. i believe that when americans start getting their tax bi for 2013 next april, there's going
11:04 pm
to be some very long faces, people are going to be very upset. insiders are even telling me they expect americans to start moving to low-tax states because the impact is going to be so horrendous. and as we know, a lot of this is obamacare taxes. what is the burden of obamacare for americans and their taxes? >> well, there are 20 different taxes in obamacare. there are 47 new jobs for the irs in obamacare. some of them just keeping track of stuff. you're going to have to present documentation about what kind of insurance you have and prove that you have it. so the irs is going to be doing a lot of information gathering for obamacare but also 20 taxes, those penalties for bad people who don't buy their obamacare health insurance. they're going to atheir fees -- pay their fees, taxes, penalty as well as everything from the tanning tax to the tax on good health care plans that some
11:05 pm
people spent a lot of time to build up. gerri: huge, huge taxes on investment income coming, new taxes on, you know, your regular old-fashioned income coming. people are going to see a big impact, particularly people who are wealthier. and i've got to tell you, is this the agency to do that? let's take a look at some of the recent irs scandals. the pun they've spent on conferences -- the money they've spent on conferences, $50 million. fraudulent tax refunds going to people all over the planet. they target the tea party. the list goes on and be on, and in this particular graphic you can certainly see everything that's happened. and some of thisust in the last few months alone. grover, is the irs prepared to take on some of these responsibilities, particularly the ones you just outlined with obamacare? >> well, it's not clear they are because they've been telling you that all -- some of the harassment of political groups was sheer incompetence, that they weren't doing it on purpose. now, incompetence as a defense
11:06 pm
does not make you feel real good abou moving forward. i served on the commission on restructuring the irs in the 1990s under clinton, and they had the same kind of politically-targeted abuses of the irs that we looked at then that we're seeing now. they're back at it again. so now they're going to have more of your data in the hands of the people who wanted to punish people, who had tea party inheir titles or were conservatives or they thought didn't agree with obama's political goals. now they're going toave a whole bunch more data and the ability perhaps to get their hands through that data into health care stuff. i mean, it's -- there ought to be a separation of church and state and irs and everything else. jer what you mean by that is that the people who are analyzing our tax forms shouldn't also be enforcing the law in other arenas and that's exactly what's going to be happening. and i've got to tell you -- >> or playing politics.
11:07 pm
gerri: -- it could be a recipe for disaster, do you agree? >> i think it is. it could also be a heavily politicized recipe for disaster in addition to sheer incompetence. gerri: grover, thanks for coming on the show tonight, we appreciate your time. now we want to know what you think. here's our question tonight, when itomes to your tax dollars, are they working, or are they being wasted? log on to gerri, and i'll share the results at the end of tonight's show. coming up at the bottom of the hour, we have a special call-in show where our panel of experts will answerestions with. you want to sound off, you have a question, we want to hear from you. so we'll get your calls in about 20 minutes from now. when we come back, a major fight brewing in san diego as a landmark is being taken down because of the good old separation of church and state. and the white house putting more pressure on insurers to make up for their obamacare mistakes. the ceo of e-health joins me
11:08 pm
with his take, coming up. ♪ ♪ every day we're working to be an even better company - and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor.
11:09 pm
our commitment has nevebeen stronger. mm. mm-hmm. [ enne revs ] ♪ [ male announcer ] oh what fun it is to ride. get the mercedes-benz your wish list at the winter event going on now -- but hurry, the offers end december 31st. [ sant] ho, ho, ho! [ male announcer ] lease the 2014 glk350 f $419 a month at your lol mercedes-benz dealer. ♪ [ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone on the right track. the power tools iroduce themselves. all the bits and bulbs keep themselves stocked. and the doors en handle the checkout so we can work on that thing that's stuck in the thing.
11:10 pm
[ female announcer ] today, cisco is connecting the internet of everything. so everyone goes home happy. ds your mouth often feel dry? a dry mouth can be a side effect of many medications but it can also lead to tooth decay and bad breath. that's why there's biotene. available as an oral rinse, toothpaste, spray or gel, biotene can provide soothing relief, and it helps keep your mouth healthy, too. remember, whe your medication is doing you good, a dry mouth isn't. biotene -- for people who suffer from dry mouth. pop in the drum of any machine... ♪ wash any size load. it dissolves in any temperature, even cold. tideod pop in. stand out. gerri: another obamacare deadline chany the white house. the obama administrion
11:11 pm
requiring insurers, get this, to allow enrollees who pay their first month's premium by december 31st to be given coverage starting january 1st, putting even more strain on the insurance industry. with more on this, gary lauer, the ceo of e-health. you describe yourself as the of insurance. >> of health insurance, we do. gerri: tell me, though, what you make of the president's requirement of the industry. >> well, i understand it, because they're so far behind on enrollment. and apparently, there's some real ises with getting people into the payment system and enrolled. you know, the way they're defining enrollment right now is interesting. it's someone who has selted a product. our definition at our company is you have selected a product, you've paid for it, and the insuranccompany acknowledges that, and you can take that insurance to your doctor, the hospital or whatever. gerri: so it's like loading up the shopping cart on, and that's the end of this process because they're not finishing this. >> tt's the perfect analogy. in fact, in the e-commerceorld
11:12 pm
i live in, the shopping cart typically has a large number of people who never finish. companies like, my company, e-health. we'll see between 20 and 50% of consumers not finish the process. gerri: wow. i wonder, you know, i think that's a fascinating description, and i wonder if that's going to be the experience for the obamacare site. >> well, i don't think that the number of people they've reported enrolled so far which is close to 400,000 is actually going to end up being those 400,000 specifically. there will be people who drop out. gerri: right. and it could beas high as you're describing. >> well, who knows? early, we're not going to get 400,000 signed up of the 400,000 that are being reported right now. i think it's 365. things happen. gerri: let me get you back to my first question, the requirement of the president. if i find out by december 31st i'm online on the web, you have to processy paperwork by january 1st, is that possible? >> it's actually december 23rd,
11:13 pm
so we've got ten days. it's possible, but it's really hard. i'll give you an example, we've got over 20,000 consumers right now at e-health who want to sign up for subsidized health insurance. we're working with the administration, and there's a lot of good people working on this at cms, but the technology's not working well enough yet. i'm concerned about the 20-30,000 we're going to see soon and getting through the process. that's a lot of people in a short period of time. if you look at some of the enrollments in the state exchanges and the federal government exchange, we're way behind where all of this needs to be. gerri: i know the government's talking abouted about getting seven millio people signed up pronto, and five million people have lost coverage. it seems to me like the site has a long way to go to make good on the promises the administration has already made. >> well, to expect the to do this is foolhardy, it's not going to happen. you've got to have government ending the private sector working on this, and this is something i've been talking about for a long time. you've got to embrace companies
11:14 pm
like mine that get -- gerri: are youing with embraced finish are you being embraced or hindered? >> well, we've been embraced with a regulation. we haven't been able to process yet because, frankly, the technology hasn't worked, and i think they're so busy trying to just get health , we're not getting the kind of attention we need. what's unfortunate is someone like us can significantly help to increase the number of people enrolled both at and the 14 states running their own exchanges. i was looking at "the new york times" yesterday. they reported the enrollment for the first two months state by state -- gerri: right. >> oregon, 44 people. maryland, 3800 people. gerri: it's astonishing. >> they need help, and we've been reaching out to these states. gerri: before you go, i want to talk to you about this back end of the web site that apparently isn't working well, so insurance companies, they're not getting the data they need on these people even if they sign up to actually bill them. how -- is that being fixed? what's the status of that? >> you know, i'm not inside there, so i don't know.
11:15 pm
i've heard some of the congress lal testimony that this part of the site is still -- gerr are the insurance companies telling you what' going on? >> el, they're concerned about what's flowing to them, yeah, we hear that. i know h it happens to us, we've been at this for years, and you've got to transmit this information and the payment. these products have to be paid for. and i think what the president has asked for in the administration makes some sense. but how an insurance company extend coverage when they don't know they're going to be paid or not or who's going to pay, i think it's somewhat problematic for these insurance companies. gerri: gary, it's great having you on the show. >> my pleasure. gerri: coming up later, i'm joined by a panel of very smart tax experts to answer all of your tax questions. we want to hear what you have to say. 1-877-249-26. we'lget to your calls in just ten minutes from now. and, next, the ongoing fight over the separation of church and state making its way to san
11:16 pm
diego. does the city have the right to does the city have the right to have this cross, take a look at [ male announcer ] here's a question for you: if every u.s. home replaced one light bulb with a compact fluorescent bulb, the energy saved could light how many homes? 1 million? 2 million? 3 million? the answer is. 3 million homes. by 2030, investments in energy efficiency could help americans save $300 billion each year. take the energy quiz.
11:17 pm
energy lives here. yep. got all the cozies. [ grandma ] with n fedex one rate, i could a box and ship it r one flat rate. so i kn untilt was full. you'd be crazy not to. is tt nana? [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. so i deserve a small business credit card with amazing rewards. with the spark cascard from capital one, i get 2% cash back on ery purchase, every day. i break my back around here. finally soone's recognizing me with unlimited rewards! meetings start at 11, cindy. [ male announcer get the spark business card from capital one. choose 2% cash back or double miles on every purchase, every d. what's in your wallet? i need your timesheets, larry! but it doesn't usually work that way with health care. with unitedhealthcare, i get information on quality rated doctors, treatment options and cost estimates, so we can ke better health decisions.
11:18 pm
that's health in numbers. unitedhealthcare.
11:19 pm
♪ ♪ gerri: listen to this one, a 59-year-old veteran memorial deemed unconstitutional because it's a cross. a federal judge ordering the removal of the 43-foot-tall cross on the top of san diego's mount soledad because 90 days -- with 90 days, because it violates the constitution and separation of church and state. but have the courts gone too far? doug burns joins me now. okay, 90 days, that's what we're looking atith this cross, should it be removed? how do you do yournalysis? legally, that is. >> firstf all, these establishment clause cases are case by case to a great extent, and the standards are so wide open, and that's where we get
11:20 pm
into all this stuff abou legislating from the bench. the point is you ought to have a legislature say you can't put up something that's higher than 40 feet, then there would be guidance. what the law is now, gerri, ththere's a three-part test. one, does it have a secular purpose? this plainly does because it's a war memorial that went up in 1952. two, does it promote religion on some level? we have to grudgingly concede that, yes, it does, because it's a 43-boot -- 43-foot cross. under the old two out of three rule, legally, it should remain, in my opinion. gerri: so accoing to the law -- >> yes. gerri: but there's another dimension to this. >> there certainly is. gerri: and that's the social dimension, the dimension that has to do with -- >> political correness dimension? all of a sudden. gerri: here's what happens, as i understand it, a couple of vietnam vets complained about this at first and tried to get it removed. that didn't happen. and on top of that there were people who tried to buy up
11:21 pm
pieces -- >> you know what happened, no, no, i'm glad you mentioned this. this didn't start unl 1989 when a vietnam vet who happened to be an atheist brought a lawsuit. there was a ruling saying it should be taken down, but that ruling was stayed and ultimately changed. they tried to sell 200 feet, this is phony,222 square feet. gerri: and it's a huge property. >> they said, come on, that's a ruse, that's a sham to put that little parcel in public hands. they tried it again. and by the way, there's another case where they had to board up the cross. i don't know if you remember that, and they did the same thing where they sold it privately. long story short, u.s. district court larry burns, no relation to me, ultitely ruled that it hato come down. but here's the important part, he stayed it meaning it doesn't come down while the appeal is pending, and i think that my name sake, judge burns, may be facing a reversal on appeal here. gerri: you think they're going
11:22 pm
to take this thing down? >> no, i think 's going to be reversed -- gerri: which means it'll stay. >> exactly. and i think this case is headed to the supreme court. this case is going to be a hot button -- gerri: that's what i don't understand, so there's a spiritual aspect to this as well. we were talking about this in the break. i don't think the cross should come down. >> i don't either. gerri: it's been there, first of all, for so very long, and it's to commemorate veterans, and so many people in this country see it as a symbol of hope. and to take it down now, to me, just seems wrong. >> it's a war memorial, not a religiou memorial. that's what people have to understand. and to us lawyers, we lawyers with correct grammar, it's a grandfathering concept. in other words, if you want to discuss, hey, doug, do you think you could put this up todayn 2013, that might be a different answer. but the thing was up in 1952, okay? gerri: wow. >> why complain about it? in the supreme court, i just want to finish that, you're going to see a knock we down, drag me out.
11:23 pm
samuel alito, justice alito, justice scalia and justice thomas for sure to leaf it up, then the more liberal justices on the other side, and it's going to be close. gerri: i find all of these conversations about, you know, getting rid of these symbols across the country just wrongheaded. i don't find them offensive, i'd like to see other folks, symbols of their religion -- >> that's fine. and why would you make such a fuss over manager that's on 200 square feet? gerri: the legal ramifications are so fascinating. doug, thanks for coming on tonight. >> my pleasure. gerri: and coming up next, we head to the phone lines. 1-877-249-9626. did you get that? 1-877-249-9626. we're answering your questions on taxes. you want the sound off, you want to tell us what you think about the irs, we want to hear from you on twitter, e-mail, you name it. you ask, and our panel of experts will have answers. stay withs. ♪ ♪ ♪ [ male announcer ] e new new york is open.
11:24 pm
open to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and ows more businesses... we're open to it. start a tax-free business at
11:25 pm
11:26 pm
11:27 pm
♪ gerri: tight "the willis report" exclusive continues wit your alternate user's guide to year end tax moves. april is months away. but taking action now could minimize there tax bill later. our phone lines are now wide open. colin with your questions and concerns and, of course, your of rage. the number 1-877-249-9626 we have a red hot panel. the heritage foundation, managing partner of health. always with us. and president of diversified private wealth. there are a lot of issues, but i will go right to the phone lines . james and connecticut. what you want to say? >> goo evening. thank you for taking my phone call.
11:28 pm
my question is, my friend has confirmed the she works in pacer taxes and is frustrated because he is paying for other people but can't afford health care self. gerri: i hear that from a lot of people. the reality is that we all pay a lot of taxes. we don't all get the benefits. >> to fold. we don't all pay a lot of taxes. 40 percent of the population in this country. we can argue about this, but 40 percent that pays no taxest all. the tax burden is bng carried by the other 40%, typically the working people out there. the top 10 percent pay almost all the taxes. it is not a fair system. the fact that this woman can't afford health care, this is exactly the point of obamacare. maybe she can give her credit back, but at the end of the day is still money coming of her pocket, and i don't know that it's affordable. gerri: run in indiana who wants toalk about the fair tax. >> thank you. i appreciate it. we need to pare down the tax
11:29 pm
code and replace it with fair tax legislation, h.r. 25, senate bill one to two. our current tax cut is too colicated, creates class warfare, and it is just a mess. i would suggest getting rid of a totally i going to the fair tax. gerri: get rid of the income tax as we know it. what do you say? >> absolutely. tear it up by the roots. the income-tax system the we have is too badlyroken. a problem with a fair tax, it would be hard to implement. the biggest hurdle is we have the 16th amendment in the constitution. congress has a right to tax their income. if we pass a fair tax without repealing that we will end up with the federal income-tax and the federal national sales tax. gerri: how could we let them do that? let's go to vinnie in california. we just lost in the. sorry about that. i want to go to rich for just a
11:30 pm
second. one of the things we have been talking about all week. people will be surprised by the changes that they seek, particularly wealthier taxpayers , use changes in income taxes, taxes on investment. what to you think the reaction will be? >> hopefully they know by now one of the things at the higher income levels, as you should be talking to your account throughout the year and not just waiting until april. you're absolutely right. there will be surprisedor many people because the highest income tax rate went from 35% to 396. we have an increase in medicare tax, and that is the increase on the earned income. many he the increase on unearned income which is called a net investment income tax. you have an increase in capital gains and dividends. the list goes on and on. it is quite confusing. in fact, they may be very surprised that they're basing their income tax this year
11:31 pm
looking at last year. there could be a lot of surprises. this is the time. gerri: absolutely. it pays to look ahead. you can see changes at we have the details on exactly how these taxes are changing. this could be in of a surprise. @%m telling you. julia in florida with a question on state taxes. thank you very much for taking my call. i love your show. gerri: thanks. >> i just want to say to my husband is a physician. i have saved my income -- excuse me, my income tax forms since 1967. i added up, is money we have paid in taxes. we paid more money in taxes to the government then we have in our savings account. no, there are not too many doctors that make $1 million the year.
11:32 pm
if they make 1 million, their overhead is at least 50%. that leaves them with 500,000. they have to pay taxes on that. they have no pensions. they have no insurance. they don't get anyenefits. we have to put our children to school. they get out of very old age, especially if you have a specialty. my husband was an orthopedic surgeon. in the radiologist. so the training is involved. gerri: and that costs money. i feel your pain. >> i want to tell you this. this is a low of one to tell you the president, the ceo of hospital corporation of america this year is taking of $48 million. the next -- this is on the afl-cio. the next five people and hospital corporation are taking a 110 million.
11:33 pm
if you look this up and you looked at the drug companies and with the ceos of the gospels are making in walgreens and cvs, paying off the politicians to destroy this country in the medical system. my question to you is, after payingll this money in taxes, when we have a home in the car and jewelry and fur coat and anything else that we might have, a little bit of money left in the bank, i want to know why i have to pay in a state tax to this government have drive already paid taxes. gerri: let's get our panel in on this. you are not the only person who is angry about this. >> the first thing is if you had a federal taxes, estate taxes, you could easily be over 50 percent. gerri: one in $2. >> 50% at the marginal rate goes to paying taxes. if you look at the average savings rate in this country, three, 4%. there is no y you can possibly
11:34 pm
eat 12 a year tax is to educate your children, pay your mortgage , and have enough left over to even come close of what would you pay in income taxes federal/state. having said that, thank god they did raise the estate tax exclusion to the lead over 5 million, so you can pass on a ttle bit over 5 million without paying the estate tax of the death tax. gerri: a small gift. >> well. gerri: we are just getting started. go ahead. >> i was going to say, the reality is, that increase that five and 1/4 million per person, that is to the half-million dollars that the couple can basically pass through and not be subject to tax. said the estate tax has become such a less important thing to worry about for most people. you know, that is a good result. it really is. and then depending upon what state you live in, obviously you have to look at whether or not there is an estate tax and give tax per the state of residency.
11:35 pm
gerri: we have to go to break. just getting started answering your questions. curtis, rich, dominick. they're not going anywhere. more questions, comments, answers after the break. stay with us. ♪ so i can reach ally bank 24/7, but there are no branches? 24/7. i'm sorry, i'm just really reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and from national. because only national lets you choose any car in the aisle...
11:36 pm
and go. you can even take full-size or above, and still pay the mid-size price. (aaron) purrrft. (vo) meee-ow, business pro. meee-ow. go national. go like a pro.
11:37 pm
11:38 pm
gerr well, the phone lines are live up and we are continuing to take your calls on taxes. right down here on the bottom of the screen. you can also e-mail. tax experts are back for a round to. the diversified private wealth. let's get right to the phone line. what is your question? >> well, one of my questions is this, we are retired 76 years old, said norman kneele of violence retire and take care of ourselves. now the government is going to texas on our investment more than they have in the past.
11:39 pm
also i would like for someone to be more specific on exactly how much they're going to texas for having a good health insurance policy which we feel like we have found one that we are satisfied with. i want to know how much they're going toax. gerri: the ticket to one of our experts are now to answer your question. end curtis, we want to talk about taxes on retirement income and taxes on insurance policies. what is she going to face? >> well, your taxes on investment income, capital gains and dividends will go up, we have to recover to wonder and 50,000 year. if you make a regular will be 23%. under that will be about 15%. terms of cadillac health insurance plans, that text is that ticket to 2018 to assess till a few years off. you will be taxed at 40% over a certain amoun and not sure exactly what it is,
11:40 pm
but i think it is about $20,000 for family health plan before you see that tax, a value of that amount. gerri: want to get to a tweet that we got that i thought was interesting and i could not answer. yes, well subsidies be coidered earned income? >> i have not read anything at all this is that they're going to have this benefit package your taxes. typicay tax credits are any refund, for money that was already spent. clearly that is with this credit is supposed to be, a rebate for premiums paid. gerri:o rest easy. >> for clarification, the only issue is if y understand your income so that you actually get a larger subsidy and the other why should and therefore when you actually have your return information in the shares to you make more money than you estimate when applying for the insurance, then the difference will be a taxable income item.
11:41 pm
too much of a subsidy bcause a lot to give it back. gerri: to lie in your tax return >> and your estimating. just be aware. >> too much of a credit, you have to give it back. >> shares to ready for the current year. you're going to reconcile all of this next year. you figure out what your 2014 subsidies in april 2014. your circumstances can change. gerri: let's get back to the phone lines. a question on where your income tax money goes. go right ahead. >> worried doing. gerri: some good. go right ahead. >> the fantastic. was wondering, they should, listen to the way to let us know where the money's going. it seems like people paying taxes in the mind. if you know where the money is going in seems like an unnecessarily being spent. all this income tax, has to be part of a lot, but readers should be some type of at showing people where the money's going to my house is being spent, like a necessary tax or reality tax basically.
11:42 pm
gerri: that's a great question. a thing that makes a lot of sense. people might be want to five more willing to pay of the some benefits from it. >> i say this is a great chance to plug the heads a foundation. we do ju that. come to our website. really aware of your tax money is going. you know, how much is going to defense, entitlements like social security and medicare in a much is going to discretionary spending. gerri: the reality is that people are just angry because they think a lot of it is being wasted. wepend a lot of wasted government monday it goes to social studies coming in know, we saw the irs employees give parties for people in the irs. it is ridiculous. >> is certainly is infuriating, and a real relief. if you look at where the money goes, what you will see is that because mostly to the big entitlement programs, social security, medicare, medicaid. that's why we talk about where we need to reform spending, that is where we focus.
11:43 pm
no matter what we do we will go broke unless e fix this programs. gerri: that's a great point. i want to turn to you because we were talking before the show about how people d't know what's coming down the road. you try to get people on track. you have one example of adjournment you will have a huge tax bill. tell us about that. >> that cpas in a mad-right now until the end of the year because the next estimated tax payment is due january 15th. that is the fourth payment for taxes that you think you're going to know for 2013. the come has to estimate your income. they're now looking in dividends for the year, capital gains. you have to pay the surcharge is if you make over a quarter million. i have one client being $2,703,000 extra just because of a surcharge. sohat's not normal. i realize is now your everyday person, but there will be a lot of people out there who don't have a cpa doing all this last-minute dated who will be in for a rude awakening and
11:44 pm
april 15th. gerri: are you finding the same thing in your practice? you know, we are always talking of making sure youou do these projections to know what you will come april 15th. like dominate -- domenic is saying your estimated perry covers january 15th. like we said earlier, there are a lot more taxes to be added 2013 and 2012. if you don't do those projections you will know whether you should be making a larger permanent. the other thing, differentiate between the date because for state purposes you may want to make that payment of four years because then if you're able to get the benefit of the tax deduction, the state back -- tax deduction on your federal return he'll want to wait until january. you want to make it this year. accelerate deductions. that is one of the things we talk about. accelerate deductions. that is one thing you want to look at. gerri: we have not even gone through the conversation about what's going on with some of these deductions and higher income brackets.
11:45 pm
curtis storage, dominick. don't go away. we will wrap up the show after the break in answer more of you questions about taxes. give us a call. give us a call. the phone number is right there. every day we're working to be an even better company - and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy opetions, we invest more in e u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor.
11:46 pm
our commitment has never been stronger.
11:47 pm
11:48 pm
♪ gerri: welcome back to your special user's guide to taxes. bareback with more answers to yo questions. we want to year your comments. you still have time to colin. we're going to go to dennis from the great state of north carolina. what is your question? , you there? i think we might have lost him. have we lost an? let's go to steven texas who has a question.
11:49 pm
>> yes. this is -- at geithner? >> as, you are, sir. go right ahead. >> i have a delight. i have a question. my wife has been moved 21099 status, having to avoid paying taxes for her employer. i nd to know where go to find out how to pay her withholding and most important to a more boring commercial security. gerri: interesting question. can you take that? >> sure thing. so as a 1099, an independent contractor, you're right to our responsible for making income tax payments throughout the year, including social security payments. the best way to do that is to estimate and do tax projections throughout the year based on the 1099 income that is expected that you can identify with the tax liability will be, of income tax and social security tax in and make your estimated payment to the federal government and potentially to the state. not in texas, of course. gerri: was cut today in michigan
11:50 pm
with a questio about seasonal worker earnings and how to record them. >> yeah. i am a seasonal worker. sometimes i get called back to work in april. sometimes i get come back to work in may, sometimes i get laid off in november, sometimes i get laid off in dember. how am i supposed to estimate by income when it fluctuates so much? >> that's a great question. >> we touched on the estimated tax payments, and this is why the irs gives you for payments the you can make throughout the year. april 15th, june 15, september 15th command january january 15th. it allows you everyhree months to lick your income so far and see where it's gone. so you can add to estimated tax payments of things going better or maybe even skipping completely if you're laid off. gerri: a great answer to that questi.
11:51 pm
you know, i get a tweet from janet he said, i feel like the in a blur of a natio baton spending. how can we stop? we need intervention. this is like a question we got earlier where somebody said, lawyers and your money was going i think a lot of people who pay taxes over the years feel like this. they just go up and up and up. what is a benefit to me really? how you respond? >> spending is out of control which is why we're having a huge debate in washington. doing our best to his spending under control, but it is creating a lot of headaches. i think we aren't going this process and will be for a long time. now we have to get it down. it will take a while. it will be a lot of back-and-forth. hopefully eveually we'll get the spending them because otherwise we will face even higher tax burdens in future years. gerri: i just to see the political will to cut spending. that seems to be the biggest problem. we were talking earlier about deadlines for the irs, and they give themselves a break on one deadline.
11:52 pm
normally you could file your former the very beginning of the year, and a lot of people expect to get the refunds in count on those refunds. this year not so much. it will do it later, january 28. what will that mean for families who live paycheck to paycheck? >> it will have to wait longer. so ty cannot file as early as possible and get there refunds right away. ankly we have seen this the last two years, even if they file early we have had clients have to go back and amend returns because there have been changes in rules, changes in the 1099 in the calculations of the dividends and capital gains. so late at this point. wait. do yourself a favor. give it that extra weaker so. >> uni arabizing clients soliton make sure you don't get a refund. to the san you can reduce your withholding. if you make an estimated payment don't give the government their
11:53 pm
money. gerri: then don't give you the money on your money. >> really, no they don't. it's hard lesson to learn. gerri: another caller, bill from indiana. what is your question? >> my question is, in the lower income bracket is the capital gains tax bill exempts? >> all right. dominic. >> sure. the increase in the capital gains tax relief is for the hiring people. if you have no income at all and then a capital gain depending on the size, you actually may pay zero attacks. it is tied into what your income is. if you are at the lower end of the spectrum, the worst case scenario will be 15%. it is a higher income ones that are penalized. gerri: you have something to add here. >> that is exactly right. the capitol green -- capital gains rate is graduated like the
11:54 pm
come tax rate. gerri: look. to you. you know, we talked abouthis a number of times, help people struggle to do the right thing by the irs, to file a way that they should. this year it is going to be super tricky, and part of that will be the implementation of obamacare. the irs will be more heavily invested in involved in the implementation of obamacare, looking at the numbers, putting together new numbers trying to determine what you low. how well do you think that is going too? >> you know, i don't think it's going to go as well as they expected to go for a number of reasons. we have a sequester. there has been a number of folks of the irs to have been laid off or furloughe which is the whole point of why some of this filing has been delayed. and in their system has to be up to snuff. we know that has been going as far as enforcement of some of the subsidies in checking the subsidies that are given as well
11:55 pm
as making sure people paying penalties if they do not have the individual mandate. they don't have insurance. i think it is going to be tricky we have talked about before. there is really no teeth in this. the irs to they can say you owe a penalty for not having insurance, there is really no enforcement mechanism. gerri: anpportunity to weigh in because this is a policy question. it is about this part of the government, the irs, capab of doing something completely different. this is about taxes. this is determining whether you're eligible to get this money. how prepared are they to make this happen? >> really quick. there are a lot of dedicated professionals who have been given an impossible job by congress. they're task with in forcing a tax cut that is unenforceable because it is incomprehensible and now they have been given another gargantuan task. this is not the fau of america -- the fault ofhe irs with
11:56 pm
congress. fault congress for creating obamacare. that is where the problem is, and i think there will be major problems going forward. gerri: a 6 percent aroval rating. all as a business owner, i'm constantly putting out fires. so i deserve a small business credit card with amazing rewards. with the spark cascard from capital one, i get cash back on ery purchase, every day. i break my back around here. finally soone's recognizing me with unlimited rewards! meetings start at 11, cindy. [ male announcer get the spark business card from capital one. choose 2% cash back or double miles on every purchase, every d. what's in your wallet? i need your timesheets, larry!
11:57 pm
but it doesn't usually work that way with health care. with unitedhealthcare, i get information on quality rated doctors, treatment options and cost estimates, so we can ke better health decisions. that's health in numbers. unitedhealthcare. yep. got all the coes. [ grandma ] with n fedex one rate, i could ll a box and ship it r one flat rate. so i kn untilt was full. you'd be crazy not to. is tt nana? [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. open to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a w business here and pay no taxes for ten years...
11:58 pm
we're new york. if there's something that creates more jobs, and ows more businesses... we're open to it. start a tax-free business at if every u. home replaced one light bulb with a compact fluorescent bulb, the energy saved could light how many homes? 1 million? 2 million? 3 million? the answer is. 3 million homes. by 2030, investments in energy efficiency could help americans save $300 billion each year. take the energy quiz. energy lives here. (announcer) at scottrade, our clto make their money do (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinar i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way.
11:59 pm
because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) ranked highest in investor satisfaction with self-directed services by j.d. power and associates. ♪ gerri: finally, we spend a lot of time covering charitable. a new candidate for our list of worst charities in america. it is the jane fonda foundation. it was reported that the foundation has not made a single charitable donation in the past five years. stingy is what it seems. a source close to the actress says that is not the case. there is lesson for those of you like to give, choose your charities with care. as we have seen in the administration of the nation after tragedies like newtown and self-made charities life on this, it can go awry. make your charitable dollars account. the he wasting money.
12:00 am
it's my "2 cents more." that's it for tonight on "the willis report." thank you for joining us. have a great night. see you here next week. ♪ economy. neil: we will watch and i will do it for us tonight. ♪ ♪ >> we are all social now. >> it is still too much capitalism. john: the socialist are here. and they make a powerful argument. >> if you have been successful, you didn't get there on your own. >> once upon a time there was a window was happy and fascinating. >> and another time rich people decided that they weren't rich enough. >> inequality, is that so important after all? >> we are better off.


info Stream Only

Uploaded by TV Archive on